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Oil: On the Other Hand…

• A 15% increase in the price of Brent since early July re-energised the oil bulls. However, forces continue pulling in both directions, suggesting that a price in the US$80-90pb range at year-end is still more likely than USD100.

By Alastair Newton

Saudi Arabia CPI inflation 2.31% y-o-y (consensus 2.4) in Jul-23

- Saudi Arabia's CPI inflation grew by 2.31% year-on-year in July 2023, slightly below the consensus forecast of 2.4%, signaling a slowdown in inflationary pressures.
- The current inflation rate is the lowest since June 2022 and is 0.60 percentage points below the one-year average, indicating moderated price levels. However, it remains 0.36 percentage points above the long-run average, suggesting higher-than-usual prices in the economy.

Saudi Arabia PMI 57.7 in Jul-23

- Saudi Arabia's PMI for July 2023 stood at 57.7, indicating ongoing growth in the private sector, although slightly slower than the previous month's reading.
- Despite the positive outlook, this figure represents the lowest level since December 2022 and remains below the 1-year average, suggesting room for further improvement in the economy's performance.

Saudi Arabia M3 money supply 9.08% y-o-y in Jun-23

- Saudi Arabia's M3 money supply growth rate in June 2023 was 9.08% year-on-year, the lowest since February 2023.
- Despite the slowdown, the growth rate remains above both the one-year average (by 0.32 percentage points) and the long-run average (by 0.54 percentage points).